Saudi Arabia to create $40bn AI fund

Saudi Arabia plans to create a $40 billion fund to invest in artificial intelligence, The New York Times reported on March 19, citing three sources briefed on the plans.

Officials of the kingdom’s sovereign wealth fund – the Public Investment Fund – have discussed a potential partnership with US venture capital firm Andreessen Horowitz and other financiers, unnamed sources told the newspaper.

Andreessen Horowitz and PIF governor Yasir Al-Rumayyan have reportedly also discussed the possibility of the US firm setting up an office in Riyadh.

PIF representatives have discussed what role Andreessen Horowitz could play and how this fund would work, the newspaper said, adding that the plans could still change.

Saudi officials have expressed interest in supporting chip makers and data centres that are increasingly necessary to power the next generation of computing, according to the report. They have even considered starting PIF’s own AI companies.

Other venture capitalists may participate in the fund, which is expected to launch in the second half of 2024, the newspaper said.

Source: Trade Finance